Government Urged to Reconsider Emissions Levy: FABAG Cites Detrimental Effects on Business Environment

Withdraw Emissions Levy, it’ll worsen already acidic business environment – FABAG to govt

The Food and Beverage Association of Ghana (FABAG) has issued a fervent plea to the government, urging an immediate withdrawal of the recently introduced Emissions Levy. In a statement released on February 5, the association highlighted its concerns, labeling the levy as highly insensitive and detrimental to the business landscape.

Introduced on February 1, 2024, the new tax policy targets carbon dioxide equivalent emissions from internal combustion engine vehicles. However, FABAG, along with several other prominent organizations including the Ghana Union of Traders Association (GUTA), the Trades Union Congress (TUC), and the Ghana Private Road Transport Union (GPRTU), has vehemently opposed the implementation of the levy.

FABAG’s statement emphasized the premature nature of the Emissions Levy and its potential to exacerbate existing challenges within Ghana’s business sector. The association expressed doubts regarding the effectiveness of the tax, citing concerns over its practical implementation and potential for corruption.

“In as much as the Carbon Emissions tax sounds nice in theory, its introduction is premature in Ghana and hence cannot achieve its desired objectives. The tax is going to simply raise the cost of production, create avenues for corruption and disturb the already acidic business environment,” FABAG asserted.

Questions regarding the measurement and monitoring of carbon emissions emitted by industries were raised, highlighting potential loopholes in the system. FABAG underscored the need for transparent and reliable mechanisms to accurately measure emissions and ensure fair taxation.

The association warned of adverse consequences, cautioning that the Emissions Levy could disproportionately benefit a select few while burdening consumers and undermining the nation’s economic stability.

FABAG’s call for the withdrawal of the Emissions Levy underscores growing apprehensions within the business community regarding the government’s tax policies and their potential impact on industry growth and sustainability.

As stakeholders continue to voice their concerns, the government faces mounting pressure to reevaluate its approach to environmental taxation and consider alternative strategies that promote both economic development and environmental stewardship.

Read full statement below:

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